Congressional Budget Proposals And Why We’re Fasting
I stopped eating on Monday and joined around 4,000 other people in a fast to call attention to Congressional budget proposals that would make huge cuts in programs for the poor and hungry.
By doing so, I surprised myself; after all, I eat for a living. But the decision was easy after I spoke last week with David Beckmann, a reverend who is this year’s World Food Prize laureate. Our conversation turned, as so many about food do these days, to the poor.
Who are — once again — under attack, this time in the House budget bill, H.R. 1. The budget proposes cuts in the WIC program (which supports women, infants and children), in international food and health aid (18 million people would be immediately cut off from a much-needed food stream, and 4 million would lose access to malaria medicine) and in programs that aid farmers in underdeveloped countries. Food stamps are also being attacked, in the twisted “Welfare Reform 2011” bill. (There are other egregious maneuvers in H.R. 1, but I’m sticking to those related to food.)
These supposedly deficit-reducing cuts — they’d barely make a dent — will quite literally cause more people to starve to death, go to bed hungry or live more miserably than are doing so now. And: The bill would increase defense spending.
Beckmann, who is president of Bread for the World, made me want to join in just by talking about his commitment. For me, the fast is a way to demonstrate my interest in this fight, as well as a way to remind myself and others that there are bigger things in life than dinner. (Shocking, I know.) I expect I’ll learn something about patience and fortitude while I’m at it. Thirty-six hours into the fast, my senses are heightened and everything feels a bit strange. Odors from the cafeteria a floor away drift down to my desk. In the elevator, I can smell a muffin; on the street, I can smell everything — good and bad. But as hungry as I may get, we know I’ll eat well soon. (Please check my blog for a progress report.)
Many poor people don’t have that option, and Beckmann and his co-organizers are calling for God to create a “circle of protection” around them. Some are fasting for a day, many for longer. (I’m fasting until Friday, and Beckmann until Monday. And, no, it’s not too late to join us.)
When I reminded Beckmann that poor people’s hunger was hardly a new phenomenon, and that God hasn’t made a confirmed appearance recently — at least that I know of — he suggested I read Isaiah 58, in which God says that if we were more generous while we fasted he’d treat us better. Maybe. But a billion people are just as hungry, human, and as deserving now as the Israelites were when they were fleeing Egypt, and I don’t see any manna.
This isn’t about skepticism, however; it’s about ironies and outrages. In 2010, corporate profits grew at their fastest rate since 1950, and we set records in the number of Americans on food stamps. The richest 400 Americans have more wealth than half of all American households combined, the effective tax rate on the nation’s richest people has fallen by about half in the last 20 years, and General Electric paid zero dollars in U.S. taxes on profits of more than $14 billion. Meanwhile, roughly 45 million Americans spend a third of their posttax income on food — and still run out monthly — and one in four kids goes to bed hungry at least some of the time.
It’s those people whom Beckmann and his allies (more than 30 organizations are on board) are trying to protect. The coalition may be a bit too quick to support deficit reduction, essentially saying, “We understand the need for fiscal responsibility, but we don’t want to sacrifice the powerless, nearly voiceless poor in its name. As Beckmann knows, however, deficit reduction isn’t as important as keeping people from starving: “We shouldn’t be reducing our meager efforts for poor people in order to reduce the deficit,” he told me by phone. “They didn’t get us into this, and starving them isn’t going to get us out of it.”
This is a moral issue; the budget is a moral document. We can take care of the deficit and rebuild our infrastructure and strengthen our safety net by reducing military spending and eliminating corporate subsidies and tax loopholes for the rich. Or we can sink further into debt and amoral individualism by demonizing and starving the poor. Which side are you on?
If faith increases your motivation, that’s great, but I doubt God will intervene here. Instead, we need to gather and insist that our collective resources be used for our collective welfare, not for the wealthiest thousand or even million Americans but for a vast majority of us in the United States and, indeed, for citizens of the world who have difficulty making ends meet. Or feeding their kids.
Though Beckmann is too kind to say it, he and many other religious leaders believe that true worship can’t take place without joining this struggle: “You can’t have real religion,” he told me, “unless you work for justice for hungry and poor people.”
I don’t think you can have much humanity, either.
By: Mark Bittman, The New York Times Opinion Page, March 29, 2011
Why Boehner Must Shut Down The Government
How should Republican leaders deal with the dilemma of being caught between a base that will view any budget deal with President Obama as a sellout and independent voters who are likely to turn on them if they shut down the government? Jonathan Bernstein thinks they should bite the bullet and cut the best deal they can, figuring they’ll get hit by the base no matter what:
what Boehner has to do is to convince Republican Members of the House that the hit they’re going to take from the right for compromising is inevitable. They’ll be seen as sellouts if they cut a deal before a shutdown. They’ll be seen as sellouts if they cut a deal after a six week shutdown. True believers will always be convinced that complete and total victory was just a week away if only the cowardly politicians had been willing to hang in there. They can’t win that game.
Not a bad argument. The counter is that it’s one thing to cut a deal with Obama, and another to be perceived as cutting that deal without really fighting. If Boehner shuts down the government and then cuts a deal, at least he’s demonstrated some willingness to go to the mat and fight, right? Bernstein is right that he’ll have angry Tea Partiers regardless, but I do think he needs to show that he’s fought the good fight. A deal with Obama is bad no matter what, but a deal without a shutdown looks like surrendering the fort without firing a shot.
The other quibble I have with Bernstein’s analysis is that I don’t think he’s really thinking about this the way Boehner is, or even should, be thinking about this. What is the downside to a shutdown? Republicans get less popular, have a lower chance to win the presidency in 2012, and maybe a higher chance of losing the House as well. What is the downside to cutting a deal? GOP backbenchers revolt against Boehner and depose him as Speaker of the House.
If I’m Boehner, I’m more worried about the guns pointed at my back then the guns pointed at my face. A shutdown increases the small chance that he goes from Speaker to Minority Leader in 2013, but a deal increases the chance that he goes from Speaker to (R-OH) in 2011. The right-wingers do not trust Boehner, and he has very little slack. He also lived through a series of purges and attempted purges in the late 1990s, always taking the form of purists complaining that the leadership had gone soft.
Boehner’s top priority is probably staving off internal revolt. That means shutting down the government.
By: Jonathan Chait, The New Republic, March 30, 2011
What A Government Shutdown Could Cost Us
I don’t want to start a market panic here. I’ve no desire to be known for “The Klein Crash of 2011.” But it’s safe to say that much of Washington finds the low, low yields on Treasurys — which represent the market’s serene confidence that the U.S. can handle its debts — a little baffling. Senior government officials have told me they think Treasurys are probably a bit overpriced, which is a bit like the executives of GE privately wondering why investors are so sure they won’t go bankrupt. The investors might be right, but it’s not comforting to hear.
The market isn’t totally wrong, of course. The federal government probably won’t default on its debt. But it’s actually pretty hard to explain how we get the spending line and the revenues line to match each other. And we have a really dysfunctional political system. We’ll figure it out somehow. We always do. But our low borrowing costs are an advantage we want to preserve for as long as possible. That means keeping the market from realizing that partisan polarization mixed with our weird legislative system makes insane outcomes easily imaginable.
This is why a shutdown would be so dangerous. A last-minute deal tells the market that America is a country that dithers and procrastinates and anguishes but eventually makes the necessary decisions to avert terrible consequences. We can be trusted to follow through, even if only at the last minute. A shutdown tells the market that our political system has become so dysfunctional that we actually can’t be trusted.
Asger Lau Andersen, David Dreyer Lassen and Lasse Holbøll Westh Nielsen — remember them? — have looked into how the market treats late budgets in the states — and late budgets in the states, it should be noted, are considerably less public and psychologically disruptive than a shutdown of the federal government during a weak economy. The answer is: not kindly (pdf). “We estimate that a budget delay of 30 days has a long run impact on the yield spread between 2 and 10 basis points,” they conclude. To put that in context, economists estimated that if the Federal Reserve pumped $400 billion into the economy, it’d lower yield spreads by about 20 basis points, or two-tenths of a percent. And it actually gets worse than that: “Markets also punish late budgets much more harshly if they occur during times of fiscal stress.”
I think it’d be fair to characterize this as a time of fiscal stress, don’t you?
There are some reasons for optimism here. Markets seem to punish fiscal mismanagement more lightly if the state has access to lots of money, which usually means reserves. The federal government has access to lots of money — though through borrowing, not reserves — so it’s possible we’d get off lightly, too. If you look back to Treasury yields in 1995, you don’t see an obvious change, but (a) perhaps yields would have been lower without the shutdown and (b) the economy is a lot weaker today than it was in 1995. At any rate, do we really want to test this? And if so, how many times? The tea party types are already promising to oppose an increase in the debt ceiling in the absence of massive entitlement cuts. Sen. Marco Rubio says he’ll oppose lifting the debt ceiling unless it’s accompanied by “a plan for fundamental tax reform, an overhaul of our regulatory structure, a cut to discretionary spending, a balanced-budget amendment, and reforms to save Social Security, Medicare and Medicaid.” That’s quite a list of demands in order to avoid economic catastrophe.
The irony of all this comes clear if you consider why we’re afraid of deficits in the first place. If the market comes to believe our debt is too large for our political system to pay back, they’ll become more skittish about buying government debt, and that’ll send interest rates higher and the economy lower. But if we have a series of shutdowns while we argue over how much to cut and how fast, our paralysis will convince the market we can’t get our act together in time to pay off our debts and they’ll send interest rates skyrocketing anyway. We’ll have caused exactly what we sought to prevent, and done it now, when the economy is weak, rather than later, when the economy is stronger. As I said at the beginning of this piece, I’d sure hate to be known for causing an economic crash. How about you, Congress?
By: Ezra Klein, The Washington Post, March 30, 2011
The High Price Of Rigidity: The GOP Wants A Government Shutdown
House Republicans have already won so much in this year’s federal budget standoff that they could easily declare victory and put an end to the maddening and dysfunctional cycle. Previous Congresses would have noticed that millions of people are still struggling in an economic downturn and tried to help, but Republicans have succeeded in shutting off that conversation.
They have won the philosophical war, compelling Democrats to agree to tens of billions in spending cuts. Yet that does not seem to be enough for the Republicans who now control the federal steering wheel.
With a hard deadline looming, talks to prevent a government shutdown have been stymied for a week because Tea Party members of the House have demanded everything: not just some of their cuts but almost all of them, and not just a reduction in spending but a reduction only in the programs they don’t like. Many are insisting Democrats also agree to nonbudgetary riders, like ending the financing of Planned Parenthood or health care reform.
They simply will not accede to anything that looks like a compromise with President Obama. Caught in this position, Speaker John Boehner knows the public is likely to blame Republicans for the pain of a shutdown, once it sees that the Democrats offered difficult compromises that his caucus rejected. That is the price he pays for riding to power on the backs of people who don’t understand that government cannot be built out of ideological rigidity.
If Mr. Boehner cannot persuade his members that the public does not want a government shutdown and will blame them, then much of the government will close its doors on April 8, when the current stopgap funding measure runs out. So far, the Republicans have wrung $10 billion in cuts from earlier deadlines, but their bill to butcher the current year’s budget with $61 billion in radical cuts was voted down in the Senate.
Democrats have put together a package of $20 billion in cuts, on top of the $10 billion already agreed to. They have not released the details, but officials say they could include some current spending and some mandatory programs, like agriculture subsidies. This package is likely to be far more painful than the last one and will almost certainly pull back the reins much further than is prudent when the economic recovery is still sputtering. But in the split-the-difference culture of Washington, it will get them halfway toward the Republican goal line, further than imaginable just a few weeks ago.
Does that mean the House will end the week-by-week bloodletting that is already hampering many federal agencies? So far the signs do not look promising. Republicans have told Democratic negotiators that the cuts can only come from their original, rejected bill. Many are still clinging to the ideological riders that will certainly draw a presidential veto. One way or the other, Tea Party lawmakers are about to learn a lesson in how government operates; the only question is whether the public must suffer for their education.
By: Editorial, The New York Times, March 29, 2011
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